>> mergers grounded, the justice department in six states try to slam brakes on american airlines and u.s. airways attempt to create the world's largest airline saying consumers will be hurt by reduced routes and service. will airline investors be left holing the bag, and what does this mean for travelers? forget seacrest, ackman out, three years after setting out to turn around jcpenney, bill does his own about faith after failing to oust the retailers' interim ceo. we'll look at what the defeat means for jcpenney and investors. retail wars. who has the edge when it comes to making a buck? the low end or high end retailers? we'll debate it for you and tell you which retailers are killing it. "countdown to the closing bell" begins right now. ♪ liz: good afternoon, everybody,

i'm liz claman, the last hour of trading, breaking news right now. we told you it would happen, and we told you it would happen here on "countdown to the closing bell," billionaire investor, carl icahn, announcing the next big investment, did it on twitter like we said he would moments ago. he said, "we currently have a large position in apple," confirming the tweet to me minutes ago. i just got off the phone with carl who told me on the phone we're there. we think it's extremely undervalued, and we think a bigger buyback is a real opportunity here. again, he told me right on the phone, minutes ago, we are there. he sounded positive about it, so there it is. icahn picking a large position in apple, and the stock is moving up. he's advocating that larger stock buyback, and that is juicing -- you can see the intra-day picture the second it hit twitter, last week, he told the viewers he would make the

next big announcement on twitter. there it is. stock moving up four and two-thirds percent or $22 for apple. 489, still well below the high last september of 704 a share. the nemesis, actually, bill ackman quoted the thing, this just moments ago from former jcpenney ceo allen who just told fox business that ackman forced the board to rethink what they were doing. that's the good part of it. it went on to say it would take the company one and a half years to get back on track. more on the activist investor who departure from jcpenney and what was said in a moment. we have both stocks moving at the moment. we've been covering the breaking news since it broke. the department of justice, another big story you need to know, trying to block the megamerger between american airlines and u.s. airways, and rich edson is following this from the moment it broke. rich, the latest.

>> well, liz, here we are at the national airport where the government says there's an effect citing 69% of takeoff and landings to be controlled by one airline, 63% of non-stops leaving here all to be controlled by the one merged airline. the government and you mentioned it, liz, six attorneys generals saying we could look at higher prices, reduce service, hike fees as a result of this merger if it goes through. the government adding that absent the merger, u.s. airlines and american will continue to provide important competitive constraints on each other, and other airlines, and now, u.s. air and american say they are going to fight this thing believing the department of justice is wrong in its assessment of our merger, blocking the pro-competitive merger denies customers access to a broader airline next that gives them more choices. now, earlier today on fox business, spoke to a former ceo who has plenty to do with mergers in the past, and he says that the timing of this is pretty awful. take a listen. >> these two carriers have spent

a lot of time putting their systems together, have been running joint ads, at this 1 # 1 #th hour to stop this would be a trave sit. -- travesty. >> we go to court from here, a tactic of the government from the past to extract concessions in a merger agreement by going to court to challenge. the department of justice says, in this case, look, the best thing for customers is if these two airlines remain separate and they want to see it through until the end. back to you. liz: it's fascinating. i was pulling every. you guarded the -- forwarded it, and the e-mails were fast and furious. what was important said by american was with 6700 daily flights, 336 destinations, 56 countries, quote, we will add more destinations. do you believe them, rich? do you believe the airlines? >> the government doesn't, and that's the important part here. liz: yeah, well, people's

reputations on the line here. it's interesting, but we'll watch this so closely. let's get to the floor show. we just through you individual stock stories, but look at the markets, where we are now, way different from where we were this morning. to the new york stock exchange, the cme group, and imex too. thrng moshings we were down 50-plus points for the dow jones industrials. right now, we reversed that, and what's fascinating is this the ninth session, nine-day trend where the low part of the markets hit before noon, and we saw a clawback here to some type of gain on most of the indexes. what's going on? >> sorry, i'm good, i'm good, sorry. liz: no problem. >> the markets have been very dull, and, you know, we have an added, never sell a dull market short. we're not out of the woods, but today's an interesting day, liz, i would agree. what stands out aside from the apple news and justice department and airlines is the

financials. i mean, as a sector, the financial stocks are agenting great again, and they are, after all, the life line to the overall u.s. economy, and i think it's pretty significant when that sector starts to act well, using the rest of the market somehow follows. liz: well, okay, and i began saying that ninth session in a row we see before noon, i turn the head because i have notes all over the place, ran here after i got off the phone, and, again, we have a great move here in the s&p above 169 #, an earlier level, charlie, people watched. what are you looking at now as we sit here mid-august waiting, waiting for something to happen? >> well, you know, i think we're mired in a trading grade, liz, and in between, really, 75 to even or 1675 to 1700, and 1688's a big pivot. i noticed what you did, liz. what i heard is that you're seeing a lot of managed money selling stuff in the morning and retail coming in and buying it

later in the day. generally, that trend doesn't last toping, and i have to say that that's a bearish input in the market, but it's a tough market, liz. it comes down, you see people waiting in the wings to buy, but what we need is some type of catalyst, and i don't know what it's going to be to take us from the trading range because for the past month; we've been in a 25 trading range. liz: could it be, you watch commodities move after the nonvoting member of the fed for 2013 came out today, second half of the trading session about, or a little bit on the other side of that and said, in essence, this tapering situation, you knew it as coming. it'll come september or december, and, i mean, the quote was tapering was met to have a beginning and an end. i think that that may be exactly what charlie's talking about, luke, that that's the move, the push. >> i can't agree with you more.

look at the markets hanging in there with the move in treasuries; right? could it be good news is good news now when we have to be scared of it? if i would said last week we would have this move in treasury, you thought the markets were down 300 points. liz: looking at the 10-year yield, 9.5 basis points to the upside here, and look at the yield, 2.72, luke. >> yeah, and look at the 30-year. i mean, and then look at oil; right? oil is really hanging in there, and numbers from china, and retail sales were good, and oil is staying up, the gasoline is staying up there, and the market is hanging in there. i think for august, we might be in a trading range, but remember, september and october are volatile months, and if we can get through the market, it sets up well for the end of the year. liz: teddy shaking his head, if it's "if," we have a statement on carl icahn annoyanced via twitter and confirmedded on fox

businessings, he is taking a stake in the company, and apple says, quote, tim -- that's tim cook, the ceo, had a very positive conversation with mr. icahn today. ha-ha, they took the call. you better always take icahn's telephone call, but he told us just before the top of the hour we're in when it comes to apple says it's extremely undervalued, and he said, liz, a bigger stock bye back is something we would expect. now, that's not exactly something we have not heard before, but we heard other activists investors ask for the exact same thing when they were not doing something like that like david einhorn, but there's real activity here. i don't know if we can look at the quote on apple. i can pull it up as well, but the stock moved 4% up immediately, up 4.5% now. there's that. there's jcpenney, which has a very interesting, all be it gossip thread of a connection here because bill ackman battles with icahn, but we have more on

the battle to save jcpenney. fox business also just spoke with former jcpenney ceo, and this is the guy that was asked by bill, would you come back and replace mike illman, the guy there now trying to fix the company, and hi said, come back, and this is what allen said about the state of the company, he's the quote. the key to the company is not the ceo, but people believing in the company and putting in the work, the company has to come together and say how we will make the company attractive. okay. people, wall street, investors. does wall street believe in jcpenney? we're looking at that right nowment lauren? >> that is one of the hardest questions to answer. this has been such a story. you know, the resignation of ackman could bring peace to the board r at least, but no peace to wall street, not today. look at it, down 3.2% for jcpenney, shares near their

annual low they hit on friday, 12.74. it's level now. jcpenney has a host of issues, we know about them, in the back to school season, a key season, and no one's expecting great numbers from jcpenney. liz, and, you know, you have to remember when a new ceo does eventually come into to replace ullman, without having ackman in the picture, it could be a good thing to attract candidates; right? >> liz: yeah, he was a believer, took a stake, the largest shareholder in jcpenney, and what's the stock done? you see it on the screen. it's gone down. what did it do today after being kicked off the board? it's gone down. this is a very tough battle to fight, but it's a fascinating one, folks. we've seen turn arounds work if done properly. this could be one of the most difficult ever seen in apparel. closing bell ringing in 49 minutes. retail sales, let's continue that theme. they are actually growing. this is just the time jcpenney

could be capitalizing on a stronger consumer. according to the latest retail sales numbers out today, yeah, it's a recovery. which retailers should you be buying that would best stand to benefit? we got an all-star panel. one side saying go on the cheaper side with the lower end retailers, and the other saying, high end all the way. you get to decide when you hear them both make their cases, and after all the hype over billionaire musk's blueprint for a revolutionary hyperloop transportation system with the tube thing, we're going to give you the odds on whether it will ever be built. we'll find out what some well-traveledded people think about musk's plan. stay tuned. ♪ the boys used double miles from their capital one venture card

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liz: in morning, the u.s. retail sales for july that edged up. that's, i don't know, the ninth, 12th, 13th time in a row we've seen that? it's less than analysts expected so where are the shoppers heading? if they are going somewhere, why don't we find out exactly what stores capitalize on it? big ticket items, pricey luxury names, or cost saving stores?

joined by the brink management capital director and luxury research senior analyst, and we brought you gentlemen in because we're done fooling around in just simply giving these basic sort of whitewashed statements that the consumers' back. specifically where, eric? low end? high end? where do you bet the money? >> i think the consumerment -- consumer wants a bargain. they know how to play this game, ann the game's trying to get the lowest price whether it's buying a high end shirt or low end item, they keep on finding the bargain going for that. >> okay, back to school is a slice of everything, for those without kids, do you feel that consumer is looking for the bargains? >> i think that consumerments to feel they have a -- consumer wants to feel they have a deal, maybe not a bargain, but in terms of quality, fashion, and they want to feel they are getting the best bang for the buck. liz: oliver, your a luxury city analyst. i know where you stand. why is luxury the way to go? >> i'm excited about kors,

really experiencing explosive growth, a global growth, awareness building in the brand, and it's a good value compared to what high end bags cost. kors handbag is $300 against 1200-plus. liz: do you look at the back to school groups shopping? >> yeah, that's important. back to school, generally, that has a .6 to .7 correlation to fall on holiday mattering about the health of the consumer. unfortunately, mall traffic is weak, negative one in july, and on the plus side, we expect better weather as well as, you know, a stabilizing unemployment atmosphere and housing prices in the s&p. those could be help everies, but i still -- helpers, but back to school this year is better than last year. liz: jeff flock went to a high end outlet mall with lines to get into the birch stores,

there's great demand. people want to at least think they are getting the good deal; right? >> even when they are paying full price, they say i'm getting a great product. oxford, tommy bahama have a t-shirt for $110. >> oxford industries, by the way, you glossed over that. i don't want to glass over oxford industries. they had a beautiful return, has it not? looking at 44% year over year. >> it's done great. one of the things we're focused on is organic growth, and people have to see organic growth maintain evaluations we have. it's been a strong year for retailers. they have been a full price store, two great concepts, a favorite idea for pure unit and margin expansion. liz: for the palm beach set. you talk, oliver, about the fast fashion concept. first of all, that's when people see something on the cat walk, and then about 24 seconds later, it's in the stores. who is capitalizing on fad

fashion? >> we've seen a lot of international competitors, h and m and forever 21 offering denim for $8. today it's about personal style and mixing and matching. if you do high and low really low, and you're not wearing a uniform, that's where it's at for consumers. tjx is a treasure hunt shopping experience for the shopper. that's exciting. liz: it's composing. >> exhausting, but entertaining. liz: a treasure hunt experience. let's talk about what else you see. i mean, people talk about luxury end and say, coach, tiffany, those names hit your radar? >> we recommend both names for different reasons. tiffany with great products, introductions on the horizon leveraging the art deco innovation. liz: will it sell? >> it will, harkening back to

the history. liz: your last pick, wet seal, a teen retailer where the american eagles have not done well as some of the other moves. >> it's talking about wet seal here. wet seal is a turn around store, a new manager, movedded to the fad fashion model, one of the few teen players in the fast fashion model, a turn around story: management reviving the business. the beauty of the model is you turn around quicker than aero and turn around in weeks, and they take advantage of that. we've seen two quarters in positive comps, first time in two years. liz: why aren't you picking the name behind free people, and that is -- >> urban outfitters. liz: urban outfitters. all i here from the teens, and guilt their parents into buying things, and free people is the hottest thing. they have anthropology too. >> that's correct. >> free people is in the

execution. >> hippy. >> it's pip -- hippy, boho, but special. to me, it's fairly priced in terms of the stock trading low 20s pe versus the sector, but they are focused on growth, great concepts about rebellious, interesting, kind of different treated excuse. >> you should be a wine expert. [laughter] >> well -- liz: i thank both of you, oliver, eric, great to have you, all their picks up on facebook.com/lizclaman. thank you, both, very much. we got the closing bell ringing in 38 minutes. fact or fiction? that's the question many people are asking after billionaire musk released this thing, this idea and his design plans for the so-called hyperloop. high speed travel like you can't believe. will the plan work, solar powered? we break it down next.

♪

join us at projectluna.com

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this broadcast we showed you as@ elon musk, the ceo of tesla and spacex revealed his vision for revolutionary transportation system called the to hyperloop which would eventually take travelers from l.a. to san francisco and just 30 mets. will his vision come to life? here with more is jo ling kent, who spent yesterday with the very company at the cutting edge of the technology. good to see you back here safely via airplane, of course. less talk about whether this is reality and not wake of the big announcement. >> reporter: that's right. we do definitely think that it is something that is closer to reality. in fact, one of the issues is that a lot of people thought it was smaller may be unrealistic. so we took to the streets and sex to see what people actually think about this. >> yeah, first of all, how much does it cost? second, will i get sick on it?

to i have to be asleep? what happens? i would like to try it. >> that sounds kind of like something i would not be too excited to try. >> i would like to make sure it is safe. >> likely. >> reporter: the experts are divided here on in the hyperloop some critics say it is not good enough. scientists working on this type of technology says it is the right incentive but impossible to execute. take a look at what this expert says, the biggest concern has to do with temperature. upon would become pressing air and expelling it downward and backward. all of that creates an enormous amount of feed which can damage the pot and its machinery coming from someone from that never again to the research blog. we also looked at what policymakers might think because, of course, elon musk wants to get rid of that very expensive high-speed rail

project in california. a former expert and transportation said this, to talk about these kinds of leapfrogging technologies in the context when we cannot and maintain our existing infrastructure is not terribly realistic, at least not in terms of public policy debates. of course, their roaster, the head of the foxbusiness.com, the leading company in this technology, we had a fox business exclusive with him yesterday in which he said that the tesla ceo put forward an idea that he had already told the team about. it is not exact, not the cheapest way to do it. e. foxbusiness.com supposedly can do it for one-tenth of the price and can do it for the tenth of a price, $17 billion price tag. other technology is a little bit different. when it is smaller. et3, they say, is more efficient . yesterday designers to personally met with elon musk actually told meet something

interesting. thhy say that he put forward this design only because he said that he would before. in fact, he might be doing it for other reasons than actually executing the technology. it might be a little bit of a political play to help officials get rid of high-speed rail. et3 says they will continue forward with their technology and break ground before the end of the year. we will be there to see that -- liz: how that compares to hyperloop. liz: that great exclusive. don't just think about the wright brothers. tsk if everyone listened to them we would not have airplanes. [laughter] they will gee hot. how about the human beings inside. but it's the early stages. if you don't dream it, no one will do it. >> reporter: that is that general theme in colorado where a lot of this technology is being developed and they have

these personal relationships with to elon musk say this is a good thing in the end. they think the technology that is not going to necessarily happen ever. but they say this gives us the passport to go forward and make the technology happen and increase jobs. liz: thank you very much. jo ling kent watching it every step of the way. the closing bell ringing in 29 minutes into it. it seems that the golden age of activist investing is upon us now. and while it makes for great front page in business headlines, does all the activism actually help you, the shareholder? we're asking a money manager what he does. he invests alongside the big hedge fund names. wait until you see whether it pays off. plus, markets may be on a roll, but one fund manager says watch out. big red flags are on the horizon. he breaks them down and then why he's making the case for large

cap, not small and mid cap. stay tuned. ♪

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♪ >> reporter: i'm ashley webster with your fox business brief. the bidding war for stanley musical instruments could be over. refusing to match a $477 million offer for $38 per share, purportedly from hedge fund manager john paulson. offering $35 per share in june. stock up more than 87% so far this year. eli lilly says a late stage study of its new experimental one deep that -- lung cancer drug resulted in increased survival rates. planning to file a u.s. marketing application by the end

of 2014. and h.j. heinz cutting 600 jobs across the u.s. and canada, including 350 in pittsburg, nearly one-third of its operations there. the company was sold in june to warren buffett's berkshire hathaway in a $23 billion deal. now we continue our "countdown to the closing bell" with liz claman. ♪ liz: and we bring you this breaking news. wednesday prepare yourself. the "wall street journal" is reporting that the u.s. government officials are going to file criminal charges on wednesday verses those two former jpmorgan traders. expected to be charged by u.s. prosecutors, this according to government sources talking to the wall street journal. apparently they guy who was the london whale who effectuated about six and a half billion dollars in losses over at jpmorgan, he has not been

prosecuted. he will not be prosecuted, according to these sources. apparently the commodities futures trading commission, sec, and department of justice will back away from him and go for both the chilean freighter and the senior guy in charge. the u.s. government timing, according to this source could still change. in fact, the word mess -- of this mess could still change. everyone is waiting. could be as soon as tomorrow that we can see charges against two former jpmorgan traders. jpmorgan is up about a half a percent. from billionaire to billionaire to billionaire, activist shareholders with a lot of money have been dominating headlines. they decided to jump into a stock. a public campaign against some of the companies in their board and the results in big changes in stock moves. is it actually a good deal for shareholders? let's take a look at some of the

more public debates. david einhorn and his big announcement that he would short green mountain coffee. the stock is fallen 14%. you see what a fall it had been doing. carl icahn made his stake in herbalife public. up more than 90% year-to-date. bill, however, has not been so lucky. since announcing his big stake in jcpenney it has gone down. should you follow along with activist shareholders? with us now, ceo of alpha clown, and his fund does just that. good to have you back. the perfect day. are you buying apple? >> that is a good question. we have been in apple for years. we have been in apple and our activist strategy for at least two and a half years. liz: you are happy today because the stock is up about five and a

half% after he tweeted and then confirmed to me on fox business just about 39 minutes ago, on the phone. he said, we are there and think it is highly undervalued. you have to be thrilled. >> i'm happy that he thinks that apple is undervalued, but, you know, winning in terms of following activists, disposers or hedge fund disposers generally is really about being consistent, not falling anyone manager, diversifying your wrist to my being automated, managing the down side. it is more than just about karl and pple. liz: but it's also about chicago rivet. >> correct. liz: how has that done? >> i think you're referring to cbi. and it we into that position the quarter after heated, and it has

been very profitable. i think it is up 50, 60 percent since we started the position. liz: up now another full percentage point today. but how do you work? when you see that for example third point investment takes a stake back in 2011, what i your next moves to the side? >> it's very simple. we really, you know -- winning is really about picking which managers to follow, and we do that by looking at something new we call a clone score which measures how well one does following the managers' filings overlong amount of time. we pick multiple managers to make and -- make the strategies and then we pick the highest position. we've run different strategies, but we are activists. we follow several names, and it

is really about investing in a group of managers and entering the positions that are high conviction positions in the quarter after they're release it. liz: the still people with some of your other positions are at the moment. aig, gilead sciences, time warner. on a day like today. already in apple. when that announcement came out. he said, i think they should have a bigger share buyback position. we are already there. when it is something different and it's a new fund manager who is getting a lot of attention, do you follow? and made a splash, but the stock jumped and he had to get out because it cannot convince the board to move. >> actually, he loved -- he did very well which is the sort of interesting textbook example about timing. a couple of years before, carl

went activists to not much effect. but he was able to convince the board to bring on a new ceo. that provided the catalyst for change in the company. and then he exited his position profitably. interestingly we still on the position because he has not to massless as of yesterday, not filed his latest disclosure. we expect that yahoo will not be in his new disclosure, so we will exit the company at our next rebalance next week. and likely we will do that at a higher stock price than he received. liz: so we will watch. i thought he would hold to at least some shares, but it is great to see you, and i want to let our your viewers know year-over-year you're up 27%. certainly it is working. since inception back in 2012, you're up 28%. thank you.

>> thank you. liz: maz jadallah. closing bell in 15 minutes. blocking the antitrust airways merger sent shockwaves through the industry when the news came out and left investors stunned. don't be stunned, be active. figure out what to do. if you don't know, we will ask a big-name money manager how investors should respond and what single man he really likes right now in the airline's. my mantra? trust your instincts to make the call. to treat my low testosterone, doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to noal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty children

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liz: airline stocks reacting today, and they are reacting as if they are under pressure after the justice department announced plans to block a huge american- u.s. airways merger.

while the airline industry is basking in uncertainty because some six states are piling it on with the doj, one money manager with more than 4 billion in assets says this is your time to snap some high-flying bargains. joining me live, brandywine global not managing director. you have 4 billion, but 47 billion. it listening to you, your reaction to the situation with the proper and the justice verses american airlines and usair is. >> it is totally unexpected. there is clearly no leak because nobody saw this compass -- coming. no one saw this coming. and it is really quite surprising because to me yes, we hear of u.s. air going up to consumers, but is directly it is not a good business. our lines are not earning good margins. not different than some prior mergers that have been approved. i am fairly surprised that the doj is going out with this particular combination.

liz: and so in the end the think this will go through, even when you have some six states plus d.c. and the burden of justice saying, no weight. we are convinccd this is a no go. >> i think it will go through. there will no doubt be confessions made. that is normal. the government will look for its pound of flesh. in particular with reagan national airport and d.c., there will be a very heavy concentration with usair having to is there already, but ultimately this deal makes sense, and the facts are really cheap. when you look at something like delta, six are seven times earnings, strong balance sheets, a tremendous cash flow, initiated. so for the sector as a whole the stocks look attractive. there are others that look good. we prefer del personally. liz: pairs back by more than seven and a half percent right now. is that a buying a virginity? it really has nothing to do with the issue at hand.

>> this is clearly the best outcome for the industry that this merger goes through. we think it eventually will. even if it doesn't, essentially we have a we have now, an industry operating rationally work capacity management is disciplined. and so this is cheap, as i said. really, your worst-case outcome is not bad. the worst-case outcome is the merger does not go through and there are too weak competitors as opposed to one strong command when you look at the attorney general supposing this, you have arizona. phoenix where usair is based. pennsylvania. so the attorney general, the detached party. liz: we have the attorney general of arizona in this next hour. everyone stay tuned for that. you're looking at large caps and say the case can be made that point. even as we bury our heads up against the debt ceiling once again and of course september 17th, the fed meeting.

>> we look at the various actions out there for investors and that is not a very good option, especially treasurys. global bond to five global bonds is something that is more interesting. then we look at equis and there is more concerned with international equities. they're finding some opportunities, but not the same quality we're finding out there in large cap space. the mega a cap, hundred million dollars or larger, those stocks in many cases are historically cheap relative to their peers. cheap, strong balance sheet, great crash love. nuys opporunity. liz: he likes delta and to automotive names, general motors and toyota. up 59% of the past year. general motors up 78%. why is there still upside to these two names? >> one of the things, a strong part of the u.s. economy. look at production and think there are a number of positives.

clearly seeing, in the case of gm, new models. ultimately when it comes to north american auto sales the average car and the u.s. right now is the oldest of has ever been. at this point it's something like 11 years old up from just nine years just 50 years ago. cars are all the need to be replaced. gray fur sales. manufacturers are the way to play it. these two in particular have company's specific catalyst. liz: we love to see the automotive industry come back. thank you. great to see you, patrick. brandywine bubble managing director. saying delta, and he believes that merger will come through. we are six and a half minutes away from the closing bell. coming up, more on my quick phone call with billionaire investor carl icahn just after he announced his stake in apple and it is not just apple stock.

wait until you see the related stock that is rallying ahead on fox business. we will tell you in just a minute. ♪ [ male announcer ] how do you get your boue?

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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ ♪ liz: and a stock colored is not just apple in the wake of carl icahn taking a stake in the financing is divided twitter. david: nevertheless, it is up huge. up 5% on news that carl icahn was buying into a lot of interest. what does he say directly? liz: i spoke to ed carl icahn just before the top of this past hour, and he told me that we believe the company is extremely undervalued. he also said, we are in. he said -- david: for how long is the question.

liz: believes they should have a bigger buyback. then we called apple. the spokesperson in essence said that there was a very nice conversation. but not just apple, but carl icahn publicly traded company is also rallying up about 3%. this is a holding company, david. david: 4%. liz: 4%. it has jumped even further in the last few minutes. an incredible return since 2000 when you add in dividends reinvested for investors. david: again, the big question, if there is a buy back an apple takes heed. is carl icahn out of there? he has a tendency to do that. there is other news. let's focus first on interest rates which had a huge pop today, ala. of course, that affected the housing sector and not in a good way. >> reporter: the housing stocks down. the biggest decliner, kb homes. the entire sector down. i was watching the 10-year all

day. of course that eventually affects mortgage rates as well as. liz: shares of hewlett-packard pushing higher. it just had a great year. >> reporter: of more than 90%. the number one performer on the dow the entire day, up better than 2%. that's a good game. david: american airlines and usair have this idea that they would just sail right through this merger, creating another huge airline company. already big enough. then the justice department put the brakes on it saying, no, that wasn't competitive behavior and they would fight it tooth and nail. those stocks, american airlines is a pink slip stock. u.s. air is down. all of these airlines are down as a result. >> grounded today. we saw the recovery. but now down. looks like it will flow below the session. 13 percent.

the stock down now as well. david: there it goes. liz: what is different? of what point -- at one point we are down more than 50% on the dow jones industrials. more than a 100-point swing. david: exciting news. liz: j.c. penney, the airline story, the apartment of justice johnson and says on the merger. david: a lot of exciting news about individual companies. we have it all covered, but let's go through today's headlines. the atlanta fed president today said it is too early for fed policymakers to lay out a detailed path for reducing and eventually ending asset purchases. he did not rule out some kind of decrease at next month's meeting, and we saw what happens as a result. liz: the core measure of u.s. retail sales rising as -- at its fastest pace since july. gasoline, building materials. they